Thyssenkrupp’s shares slumped Thursday as the struggling German industrial giant slashed its sales forecasts due to weak demand amid US President Donald Trump’s tariff onslaught.<\/p>\n
The group, whose products range from steel to car parts and submarines, said it now expects sales to fall by five to seven percent in the current fiscal year.\u00a0<\/p>\n
This compared to a previous forecast of a drop of up to three percent.<\/p>\n
Thyssenkrupp’s shares plunged seven percent on the Frankfurt Stock Exchange following the announcement.\u00a0<\/p>\n
The group has long been struggling, particularly as its traditional steel business faces competition from Asia, but the turmoil triggered by Trump’s tariffs have worsened its problems.<\/p>\n
“The past quarter was characterised by enormous macroeconomic uncertainty,” said Thyssenkrupp CEO Miguel Lopez.\u00a0<\/p>\n
“We are very much feeling the weak market environment in key customer industries such as the automotive, engineering and construction industries.”<\/p>\n
The firm, one of Germany’s best-known industrial groups that traces its history back to the 19th century, also posted a hefty net loss for the April-to-June period of 278 million euros ($325 million) — five times greater than a year ago.<\/p>\n
The results were hit by an impairment in the troubled steel division as well as restructuring costs at its auto unit.<\/p>\n
The company also gave a more cautious forecast for operating profits for the current fiscal year, which runs to the end of September. The firm expects them to be in the lower end of a previously announced range of 600 million to one billion euros.<\/p>\n
On a brighter note, its unit that makes submarines and warships reported a jump in sales and orders, driven by a boom in the defence sector triggered by the Ukraine war.<\/p>\n
Thyssenkrupp shareholders voted last week in favour of spinning off the division so it can benefit more from growing demand.<\/p>\n
It is part of a broader overhaul to split the entire group into a series of standalone businesses, but the plan has fuelled fears of further job cuts at the historic conglomerate.<\/p>\n
sr\/fz\/lth<\/p>\n
Every Exponent article goes through checks for accuracy before publication. If you have a concern or questions about this article, please email editor@purdueexponent.org.<\/p>\n","protected":false},"excerpt":{"rendered":"Thyssenkrupp’s shares slumped Thursday as the struggling German industrial giant slashed its sales forecasts due to weak demand…\n","protected":false},"author":2,"featured_media":344400,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5310],"tags":[2000,299,1824,11967],"class_list":{"0":"post-344399","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-germany","8":"tag-eu","9":"tag-europe","10":"tag-germany","11":"tag-partners-afp"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115028290787181196","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/344399","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=344399"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/344399\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/344400"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=344399"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=344399"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=344399"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}